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tv   Taking Stock With Pimm Fox  Bloomberg  October 1, 2014 9:00pm-10:01pm EDT

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>> this is "taking stock" for wednesday, october 1, 2014. i'm pimm fox. today's theme is danger. ager for u.s. stocks. prices drops. the opening of the fourth quarter revealed greater dangers for investors. we will find out will stop the ebola virus and global trade. to british airways and from west africa, but what about the shipping industry? shippingmeet a
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captain. meet the virus hunter from la jolla. the foremost expert on what the world is doing to fight ebola. all that and more. but first, headlines. > bank of america elected ceo will succeed chad holliday. diamond asmie being a ceo and chairman. suffered anund estimated $23.5 billion. its worst month ever. the largest redemption occurred september 26. the nfl and directv have extended the sunday night ticket in a multi-year deal. no terms were announced. those are the top headlines. >> thanks.
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stock prices did indeed decline. airline shares were among the biggest losers while government bonds continued their rally. for more on stocks, the chief market strategist of russell investment. he joins us by telephone from calgary, canada. i guess it was a good day to be outside of wall street. the reverberations were a bit muted in calgary. why do you think stock sold off? >> we hear the news just fine in calgary. the market has been moving around, wiggling around, looking for a pricing point. there is a lot of information that needs to come in. the federal reserve, continuing to pace. i think the big wild card is what's happening in europe. there's not a lot of new news coming out of the u.s..
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goingonomic recovery is ok, it is granting forward. we think we're are going to settle into that 3% plus or minujs for 2015. what we're seeing right now is the perspective that the federal reserve is likely to wait a little bit longer than the expected,ht have and the european central bank will have to get busy soon. their version of the quads ticket using. that will create winners and losers. uncertainty and the lack of a correction in u.s. equities for well over two years, it's led to a safe haven premium. >> let me pose a year that asian stocks and latin america and stocks in europe are all taking it on the chin because of issues related to their economies. why would u.s. stocks decline? >> this is a global perspective
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that investors are beginning to take, one we would look at as well. multi-asset strategies are going to be the way that investors are going to have to deal with a low return environment. favor seven penalized. beenvorites have penalized. this is not just u.s. part of the issue is that valuations became a full valuation in u.s. equities, probably more so in small-cap space. this was to some degree of valuation assessor by the market. patient,if they are that is what is therefore. -- it's there fore. index ismall-cap declining about 1.5%. thank you very much. the chief market strategist for russell investments. now onto the latest on the first
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case of ebola virus in the united states. one unidentified man who flew to diagnosed withen the disease. he is being kept in isolation in dallas. prices of three companies working on treatments for ebola all jumped. this is despite the selloff of the overall stock market. institute in la jolla is working on a vaccine. we are joined by the leader of the global team research. a pulitzerhere is prize-winning journalist who chronicled the ebola virus outbreak in zaire. welcome. let's start off with what you know that may have changed. what can we look to? >> here in this country, we are going to calm down around the dallas case. we won't find secondary
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transmission and people will relax. to beal problem continues liberia, sierra leone, and ginny. -- and guinea. that epidemic is out of control and growing exponentially every 20 days. though there has been a serious mobilization and we finally have the united nations motivated to do something, it is going slowly and we are discovering the flaws and all of our rapid response capacities from one nation after another. germany's air force still hasn't managed to get a single supply landed in africa. they never made a further in the canary islands. >> i want to bring in you, doctor, because you focus on rapid response and have been looking at this issue for many years. you gave a speech back in november -- tell us the challenges of tracking in stopping the ebola virus. >> ebola is one of the most
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lethal viruses we know. it blocks your immune system from fighting it. it infects most cell types. scientists have been working on this, and we have some very good candidates and therapies in development. a prime concern is that thousands of people in western africa and we need to mobilize forces for them while we try to develop the therapies. >> you have been described as "the virus hunter." what resources would you need in order to continue your work, and also to tell us how challenging is it? how technically difficult is it? >> i am leading a global collaboration to make these antibody therapies. this is unprecedented. i don't think there has been another scale were although scientists have gotten on the same page to do this single set
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of experiments to make the best antibody therapy. we have a proof of concept and more coming online. it is a very tight budget that we work under. ebola therapeutic would never be supported by free market. rare, andtypically most of the people that get it couldn't afford to pay for treatment. but treatment still need to exist. we are absolutely reliant on federal funding from the nah and department of defense. harder tos harder and do the kind of work we need to do. she said,rd what do you concur? >> of course. we have one glimmer of good news. convened a panel of experts to look at the existing candidates for vaccines for ebola, and do ask if they are good enough that it is worth pushing them on the superfast
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track? they selected two. the other from a small company in the united states that license that from the canadian government that developed it. both of these are now going to be high-priority. rapid phase i and phase ii trials. the question is how are you going to do the large-scale clinical trials? it may end up going to real people without knowing if it is working. >> doctor, you have been working in labs in which you need to be protected. the kind of personal protections do you take, and not to put a light on it, but you have also got special lab gear and a camaraderie going because you are a real team at this. >> most of what we do in my lab in la jolla is molecular biology.
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this is done with purified proteins. it is very safe, there is no danger. we have a lab where we do arts to the virus and we work in the early own -- in sierra leone. scientists have a whole array of protective gear that we need, at the doctors and many -- in many countries are lacking. we are fortunate. aware of theu are case that has been diagnosed in dallas. do you fear any outbreak of ebola in the united states? in thiswe have seen outbreak and every other incidents of ebola, is that it passes human to human by fluid, for anact in caring infected person or contacted with an infected animal. if a person has not been to western africa and they have not
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come in contact with the blood, vomit, or feces of an infected person, they are going to be failing. -- to be fine. they should channel their energy into something productive and help support their local sciences. like z-mapp, or these vaccines. the important thing your viewers need to know is that viruses do move. people once a couple of in africa and now it is a global pandemic. it is important that we mobilize whatever we can to contain this outbreak. >> thank you both for joining me. coming up, borders exists only on planes and ships. they can go anywhere. the ceo of one of the largest shipping companies talks about safety on the high seas and the health of the global economy.
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coming up, what made a computer program or a family man from pittsburgh pennsylvania into a crypto cult. his bitcoin of session. you'll meet the producer and star of the documentary "the rise and rise of bitcoin." you are watching "taking stock." ♪
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stock."is "taking the ebola virus has made landfall in the united states on the passenger from a flight from liberia. countries that do businesses across borders experience guarding against these kind of illnesses and security lapses. one of the world's largest shipping companies has its president here, joining me now. thank you for being here. we were talking that port
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security and ship security, whether it is a virus such as ebola or an undocumented passenger, that is something you have been living with since you started the business. it absolutely ramped up after 9/11. l before we arrived, people want to know exactly what who is on board, will where they have been and if anyone is sick. >> the manifest is something that is pretty important for any vessel. >> yeah. think it's right because we can carry a lot of cargo. the bigger threat from ebola is obviously an airlines. i can assure you that port state control is already checking. >> let's talk about tk. tk corp, when we were doing all of our research, there is tk l ng, tk tanker. explain the structure of tk. >> when i joined tk, it was just
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tk corporation. we determined that investors wanted a pure play company. ers, tkted tk lng partn offshore partners, tk tankers. that has been a real success. this week we announced the tk corporation was going to get out of all of those activities and be a pure play gp. people seem to like it based on the stock going up. >> why do you think people liked it? it's simpler, it clarifies? mlpeah, because we are an that isn't focused on what's happening in the u.s.. we are focused on this big energy bill that all around the world. we're picking up lng in yemen, in norway, in angola, and we are shipping it all around. when you really look at what is going to happen, china, india, that is where the real growth
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and energy is. >> here we are all in services. you are shipping all around the world and guarding against ebola but you also have to deal with piracy. that's a big issue. >> yeah. luckily we are sort of at the end of it as it relates to somalia. a big problem is refugees. there is a huge refugee crisis in northern africa all trying to come to southern europe. we have picked up several boats and been asked by coast guard's to pick them up and drop them off in places like italy. i would say the refugee prices-- a bigger crisis than when you are a tanker and you suddenly have 100 people, undocumented onboard. that is itself something you worry about. >> you get to worry about those things but you also have to worry about the global economy. telling a business is performing. >> we have a lot of long-term contracts. our lng, our average contract is
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14 years. we don't really worry about that. we worry that people will be consuming oil. our biggest customer is -- and they are going to double from 2 million barrels per day to 4 million barrels. we have offshore floating production units, tankers that pick up the oil. all that has to go around the world. when you stop and think about it, you really need tk and companies like us to be shipping all this energy. >> you are a good person to know when you want to drive your car. >> we move about 10% of the world's oil from norway and brazil in the persian gulf, and even places like nigeria. >> thank you very much. the chief executive of teekay c orp. still ahead, an the session that fuel the film. would you like to
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learn exactly what bitcoin are? there is a new documentary called "the rise and rise of bitcoin." it's next. ♪
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>> there is a new movie out and involves the fbi, federal law enforcement, computer geeks, and money. addressed it? -- interested? this is the director and the star of the new film. "the rise and rise of bitcoin." he joins me now. thanks for being here. we were trying to sort out in 10 words or less what is bitcoin. i guess you have to watch the whole movie. how did you get started? >> i got interested in bitcoin a
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few years ago. we kind of -- i got sucked in. i am a computer programmer so the technology is really kind of a breakthrough for computer science. is a cash that works over the internet. prior to bitcoin if you wanted to send money, you had to use some kind of a third-party. with bitcoin you can now send money over the internet and you don't even need an e-mail address. >> you don't need an e-mail address. that positives because i am trying to remember the moment in the movie when you have delivered all of these very powerful computers, and they are delivered in a delivery van, a dhl truck. i don't think the delivery man he was bringing to your house. al qaeda scaler were talking about when it comes to mining?
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those computers were some of the first generation of computers that had computer chips that were specifically designed for mining bitcoin. you can use them for anything else. it was exciting to get the first generation. the now within the year, mining industry -- you have huge warehouses of mining computers being set up all over the world. it has turned from a gay copy to a multimillion dollar industry. >> there is one that quite minor that -- bitcoin miner you focus on. charlie. i wonder if you can describe how you got into contact with him, and what is ultimate fate has been. in the the only miner film but charlie was one of the founders of the first bitcoin start ups.
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bitcoin early on was a very small community, hard to buy bitcoin. you had to go through a lot of steps. charlie's business made it easy for you to buy bitcoin quickly. know, they ran into a lot of questions. no one knew how the government was going to treat the client. -- treat bitcoin. >> he was arrested at the airport. he was arrested. >> the terms of his arrest were things that came out during the prior year when we were filming. amazing to capture all of it as it has been so brand-new. we were-- >> do you own a lot of bitcoin? >> i still have a lot. $390 million. >> what you intend to do with them? >> i hold them long-term now.
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i am also very involved in it quite as a whole. it's a new way to send money with a lot of technology. >> people got a check out the movie. "the rise and rise of bitcoin." k."s is "taking stoc ♪ . .
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>> this is "taking stock" on
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bloomberg. i am pimm fox. now, for a look at the market headlines. >> it plans to open the shuttered casino in atlantic city. they won the property with a $110 million bid. its holdings, including the hard rock in las vegas and three other resorts. the restructuring plan would have carl icahn invest as much as $100 million in the company and take over control. that is if the casino operator can meet certain goals. and general motors, chrysler, and nissan reported 19% increases in u.s. sales in september, beating estimates. meanwhile, ford and toyota both missed projections. deliveries jumped 47% at chrysler.
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>> in hong kong and china, they celebrated national day, the beginning of a weeklong holiday. it is the anniversary of the founding of the people's republic in china. the celebration in hong kong was drowned out, at times, by protesters. joining me is mia. what is new and what is going on? >> we are entering into the sixth day, protesters continuing to demonstrate in front of this key area in hong kong, admiralty, causeway bay. last night at midnight, protesters told the chief executive that he had until then to resign. clearly, he has not. police are in front of his home. the legislative council has increased, more or less. you have heard from a member of the executive council who said that she is willing to meet with
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protesters, which is something that is different than what you have heard. he was denouncing what was happening and saying that protesters should go back home. again, a six day. it is a holiday. expect more people to turn out. >> did they cancel the fireworks celebrations that were typical for national day? fewer shoppers, stores are closed, offices are closed. >> various retail stores have been impacted. for example, a lot of the jewelry stores have had to shut down and open later on in areas that are not affected. they didw that celebrate the important day for hong kong and china. enjoyedthat he champagne while he was celebrating. >> i want to bring in a senior fellow for the asia society. a pleasure to have you here. let's talk about the chinese
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government in beijing and their response to what is going on in the special administrative region. >> right. first, when the protests started, the hong kong government, which was essentially giving instructions, went in hot and heavy with the tear gas and they fired at these very peaceful students and democracy testers. that was a huge mistake and it backfired for them. people started coming to support these students. >> it is bad pr. >> now china is in a difficult position. from the chinese perspective, they are afraid that there will be contagion of this democracy agitation. >> they do not even want it reported in the press. >> for china, there are two things. one, they do not want contagion. jinpeng is prioritizing economic reform. his more thing is they can have
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economic reform without political reform. political reform is very intense. i am quite certain there will .ot be a tiananmen square china needs hong kong. they cannot alienate this whole generation of young people in hong kong. if they do, people in taiwan are looking at hong kong. if one country, two systems does not work in hong kong, you can forget it for taiwan. for the protesters, this is their moment. either hong kong will claim its rights as a democracy or it is going to be repressed ike every other city in china. it will become a normal chinese city. if they lose this battle, and i do not think anyone thinks they are going to win completely, but if they are completely squashed here, it will be an ominous sign. fromwant to bring in cindy ucla. she is a professor of geography and the author of the book, "china on the move." i wonder if you can comment on
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what is going on right now in hong kong and also, more importantly, why is it that, in a place that has never really known representative democracy, why is now different? >> that is a very good question. hong kong was a british colony and, for more than 150 years, there was no democracy. the queen appointed the governor who came to hong kong. systems has 17o years of history. this is a short history of hong kong people trying to exert their voice. the way they are trying to exert their voice is through discipline, pro-democracy movements. the issue here is that the tools of democracy are not really there in hong kong. given the fact that democracy -- buth a short history
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i think there is an identity crisis in hong kong. when they negotiate the joint declaration 30 years ago, the hong kong voice was not present. the hong kong voice was never present in anything. this was really the movement for the hong kong people to try to exert their voice and identity. >> i wonder if you have heard reports that the chinese government strategy is to let the protesters continue as long as they are peaceful and to then wait and see what the local population in hong kong does in reaction to having the streets jammed, having the shops closed, and having it difficult for people to go to work. >> i am hearing things on both sides of the fence. a majority of people are saying the chinese government is going to take action as soon as golden week is over. that is october 1 through october 7. many people are traveling to hong kong.
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expect for them to do something in mid-october. of course, china is going to have their next plenary session, a time when they come together and talk about reforms for the following year. many would argue they are setting the agenda for the next five years. fall was the third plenum session. it is a time for these leaders to get together. be about the social and economic as well, i think. >> what role does the preeminence of shanghai as a financial center play in the confrontation that is going on in hong kong? i think it is less important, to a certain extent. >> in china, from a financial perspective, they have the ability to take some of hong kong's thunder as an economic and financial center and shift it to shanghai and beijing. they have been doing that already. china is recognizing its
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vulnerability. at the same time, hong kong can do things the rest of china cannot do. it has rule of law and the plenary session will be talking , a big difference. companies and set up in hong kong and have intellectual property rights protected, benefit from common law. china really needs hong kong. i know there is going to be this feeling, maybe we should squash this. that is what they have done with the constitutionalists and anybody else who challenges them, but i think that china would be best served by thinking, maybe these guys in hong kong are saying something meaningful. when the people of hong kong, like people all around the world, democracy is such a powerful idea. these people are not used to being squashed. i do not think they will be able to squashed the whole generation. >> they have taken several steps to becoming a leader. they have already pledged that,
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by 2020, they want to become asia's financial hub in that side of the world. in addition, they set of the free trade zone, where you have liberalized interest rates, more convertibility with the yuan. they are taking these steps. the question is, is it going to be a threat to hong kong or vice versa? what is happening now in the streets of hong kong will affect that ordeal. >> is there a way for non-chinese to understand more easily that hong kong and its relationship to beijing and the chinese leadership may be like the u.s. relationship to puerto rico or other countries' rela with other areas? >> i think the relationship between hong kong and china is a very unique one. it is a love-hate relationship. you look at how hong kong activists are passionate about
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protecting china's rights with the outlying islands when there is tension with japan. you can see that side, the love side. the hate side is that hong kong has never really adopted communism, has never really identified with the ideology that has made up the communist party. importedery much an ideology. from the point of view of people in hong kong, born and raised in hong kong. it is very much a dilemma that the hong kong people are operating under. thehould note that pro-democracy movement has not really been a movement for independence. thaty that i have heard of is demonstrating has been asking for independence. matter of how to
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manage the relationship well so that oath entities -- so that both entities can thrive well. >> i want to thank both of you -- all of you for helping us understand this better. cindy, the author of "china on the move." societye, the asia senior. southwest airlines has a new logo and a new look. you will meet the ad man behind the love at southwest airlines. ♪
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>> this is "taking stock" on bloomberg. i am pimm fox. it is not just about getting the account. it is also about earning the company's trust for real relationships. the austan, texas-based firm was
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started by a bunch of college grads in 1971. instead, it has built relationships with some of the biggest brands in the world, such as john deere, marshalls, walgreens, and southwest airlines. he stopped by to teach me the art of the tagline. ,> when we think about branding southwest airlines, you think about the traditional idea in marketing, which is ladders. a consumer has in his mind where a brand sits on a b read if you thought about the airline letter, you would have the traditional airlines that we have known for a long time, the legacy carriers. southwest was more about giving people the freedom to fly. they were on their own latter, quick turns, low fares, and the opportunity for people to travel for low prices. originally, when they founded the airline, the competition was the legacy carriers. how do we get people to travel? southwest has been very successful with that.
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to working with southwest, you are working with the u.s. air force and you are reprising an old slogan. >> we have had the air force as a partner for most 15 years now. "aim high" is a tagline the air force is very fond of. it was a great rallying cry and we wanted to go back to that line. it really captures the spirit of the air force. their target is a youngster, someone 18-24 who likes to create things. the air force, today, recruits against companies like google and yahoo! and apple. you're looking for a different kind of individual and that line kind of reinforces that we want you to have the goals and to really pursue them. >> i know that you also work
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with marshalls, walgreens, a variety. what characterizes a good client? >> we value clients that are focused on making a difference. we talk about a brand's purpose and the difference that makes in the life of a consumer. if you look at marshalls, for example, their model is such that they purchase the overstock and they are able to offer those two consumers at a lower price. and so you get the namebrand to payrs, but you get the difference. that is an example of making a difference in the life of the consumer. walgreens would be similar, where the consumer can go, and, at the corner of happy and healthy, they have an opportunity to find something to live well. >> at the corner of happy and healthy, i have not heard that. i cannot think of any other
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industry that is more affected by what is going on with technology, the internet, online advertising. give us your thoughts about where we are right now. this week fore advertising week and a big part of the topic is around digital and how the digital world is changing environment. ultimately, our job in communication is to help deliver a message. when we begin our process, we think about where that client's target customer is and how they behave and how they want to receive information. over time, that has changed from pure television to the digital platform. we were talking about the air force, for example. when we first got that business, a large percentage of their spend was in television. today, because that target audience no longer really watches television, we are online and we use experiential and we use gaming. we migrate to these different
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channels and are able to successfully do what the air force has done in the past year because of the success of a laboratory.call col they took three problems and put them online. tinkerer,, the tech went online to try to salt problems for the air force. what is interesting about that is that our target spent an average of 47 minutes on the site. if you are trying to get eyeballs to engage the consumer, 47 minutes is a powerful stat. stewart sayd duff to people that describe the advertising world as another version of "mad men?" in you go through that era terms of understanding the history of advertising? >> i would not describe it as "mad men." an industry of
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creative people that come together to solve problems with ideas. it is a lot of fun. you do work long hours. it takes a lot of time, but you are doing it with people you enjoy. and you have the opportunity to make a difference. they can make a difference in the community at large or for the clients business. it is a fun business to be in. stewart. coming up on "taking stock," how about pampering your pet? we are going to look at the rising sales of pet products, including, yes, halloween costumes for your dog. also, a programming note that we are moving to a new time on monday. 5:30 p.m. eastern, just 30 minutes later. great guests and conversations. that begins monday, october 6 right here on bloomberg tv. ♪
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>> this is "taking stock" on bloomberg. i am pimm fox. some news from united airlines. it said that it flew the dallas ebola patient for his -- for part of his trip to the united states. he flew from brussels to washington, d.c., and then went to dallas, texas. the trip began in liberia. this is "taking stock." spending on pets is at an all-time high in the united states. one of the largest pet chains in the united states is called pet supplies plus. joining me now is alex roberts, their vice president of franchising. thank you for being here. let's talk about your involvement with the pet supplies plus. first of all, you have a dog, right? >> i do. my son and i both have allergies. it is one of those
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hypoallergenic dog that is good for folks like us. >> i know that you are new to the company, about six months or so. did they ask you whether you had a pet? >> i went through the interview process and it came up in pretty much every interview. not everybody that works at the company has a pet, but the majority of us do. 68% of households have a pet, so it is pretty common. >> let's start with a holiday that is coming up on the halloween. i was checking out some of your stuff. this is a big deal for pet owners. they dress their pets for halloween. >> it goes along the lines of the humanization of pets. people are feeding their pets higher-quality foods and treats and nutrition. all of that is very important. dressing up your dogs and cats in these costumes. at last year, my daughter , as ad our dog in a tutu ballerina. it is amazing what people do for their pets. >> what are you going to do for your pet?
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>> i do not know. she will probably be a ballerina again. >> thank you. ♪
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